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Bayer Sells Brands, Axes 12,000 Jobs

Following Bayer’s takeover of Monsanto, the company is planning on selling brands which include Coppertone sunscreen and Dr. Scholl’s footcream in a drive to cut and lower costs. This will result in 12,000 people losing their jobs. These job-cuts will account for around 1 out of 10 employees globally and significant numbers in Germany. Bayer also has plans of selling it’s almost €7billion worth animal health division. Number of shares in the German pharmaceutical firm have decreased over a third in 2018, and more so in August. This could have been a result of investors fearing consequences of about 9,000 lawsuits filed against the drug giant’s newly acquired Monsanto over alleged carcinogenic impacts and effects of their glyphosate-based weedkillers.

Bayer Sells Brands, Axes 12,000 Jobs

Glyphosate has been marked safe by Bayer and is used in Monsanto’s RangerPro and RoundUp. After a US ruling linked glyphosate to cancer, Bayer’s shares experienced sharp drops. The firm acquired Coppertone and Dr. Scholl 4years ago when it purchased consumer healthcare division of Merck for $14 billion. The unit is dealing with difficulties of falling revenues because of US consumers switching to cheaper brands and online shops. A buyer for Bayer’s 60% stake in Currenta which is the company’s German chemical production site services provider.

Their merger with Monsanto worth $66 billion in 2016 led to the formation of the biggest pesticides and seeds company in the world. With the selling of the animal health division, Bayer will focus now on crop science, consumer health and pharmaceuticals. Over 4,000 jobs will go in the combined crop science division by the time the year 2021 ends. Wener Baumann, chief executive of Bayer, said that these changes being made are necessary as they lay the foundation and base for the company to enhance and improve its agility and performance. The sales and job cuts will lead to costs of over €4 billion.

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